Solana and Blast memecoin launch and trading platform pump.fun hits $5 million in revenue

Pump.fun, a new memecoin launch and trading platform, has made $5.2 million in revenue over the past 38 days, generating $528,000 in fees just yesterday alone, according to The Block’s data dashboard.

The platform was initially launched for Solana SOL -0.17% tokens in January and subsequently added support for the Ethereum Layer 2 network Blast in February.

It has attracted significant attention from the crypto community by allowing anyone to create and launch an instantly tradable new token without seed liquidity for less than $2 in under a minute.

Pump claims it prevents rugpulls by ensuring the safety of tokens created on the platform. “Each coin on Pump is a fair-launch with no presale and no team allocation,” the project states. 

How pump.fun works

Deployers simply pick a name, ticker and JPG image and instantly begin trading on a bonding curve. Users select a token, buy it on the bonding curve, and sell it whenever they like.

A bonding curve is a mathematical curve that determines the price of a token based on its supply. The price typically increases as more tokens are purchased.

When enough users have bought the token and its market capitalization reaches $69,000, $12,000 of liquidity is deposited to the Solana decentralized exchange Raydium and burned. On Blast, the market cap requirement is $420,000, upon which $30,000 of liquidity is deposited to the Thruster DEX.

BaoBaoSol became the first token to graduate from the bonding curve to a liquidity pool on Raydium, with users spinning up tokens with any name under the sun in the hope of gaining memetic traction.

“So far, I've launched 182 pumpdotfun coins,” one pseudonymous user, Sato, claimed on X. “About 37 have made it to Raydium. I've only made $642,000. It's not as easy as people think.”

Pump says it offers an alternative to existing token launches, which typically follow one of two paths: either directly deploying a token and establishing liquidity on a DEX like Raydium, with the minting authority then renounced and the liquidity provider token locked or burned, or conducting a presale where participants send funds to an address without immediate return. 

This process can lead to high costs, including expensive set-up fees and the need for significant liquidity seeding. It also introduces complexity and risk, with presales vulnerable to scams, requiring advanced tools to monitor actions like the renouncement of token minting authority.

The Block reached out to Pump for comment.

Disclaimer: Larry Cermak, CEO of The Block, is an angel investor in Blast.